In February, Finance Minister Nirmala Sitharaman presented the Interim Budget, a preliminary financial plan before the elections, in the Lok Sabha. In her seventh budget speech, she announced significant changes, including an increased standard deduction and revised tax rates for salaried individuals under the new tax regime. Additionally, there were cuts on customs duties for gold, silver, mobile phones, and other goods.

Revised Tax Rates under the New Tax Regime

The standard deduction increased from ₹50,000 to ₹75,000.

New tax slabs:

₹0-3 lakh: Nil

₹3-7 lakh: 5%

₹7-10 lakh: 10%

₹10-12 lakh: 15%

₹12-15 lakh: 20%

Above ₹15 lakh: 30%

These new tax slabs could help a salaried employee save up to ₹17,500 in income taxes.

Financial Support for Higher Education Loans

Tax on Capital Gains

• Short-term capital gains on certain assets will be taxed at 20%.
• Other financial and non-financial assets will be taxed at the applicable income tax rate.
• Capital gains exemption limit increased to ₹1.25 lakh per year.
• LTCG (Long-term capital gains)  on specified assets will be hiked to 12.5%.
• Unlisted bonds and debt mutual funds will continue to be taxed at the applicable tax rate.

Family Pension Deduction

• Deduction on family pension increased from ₹15,000 to ₹25,000, providing better post-retirement financial stability for pensioners.

Allocation for Women and Girls

• Over ₹3 lakh crore allocated for schemes benefiting women and girls.
• Initiatives include setting up working women hostels in collaboration with industry and establishing creches to facilitate higher participation of women in the workforce.

Conclusion

The Budget 2024-2025 introduces several noteworthy changes aimed at enhancing financial stability for various demographics, including salaried individuals, students, first-time employees, pensioners, and women. By revising tax rates, increasing standard deductions, and providing substantial financial support for education and employment, the government aims to ease financial burdens and foster economic growth. The focus on capital gains tax adjustments and significant allocations for women's welfare further highlights a comprehensive approach to addressing diverse needs. These measures collectively reflect a commitment to fostering an inclusive and supportive economic environment for all citizens.

Disclaimer: The information in this article is compiled from various sources and is not to be taken as a substitute for professional advice on managing finances, reader discretion is advised.

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